Century Aluminum Company Finalizes $400 Million Secured Notes Deal
Century Aluminum Company Completes Private Offering
Recently, Century Aluminum Company (NASDAQ: CENX) wrapped up a significant milestone by completing its private offering of 6.875% senior secured notes due in 2032. This move generated gross proceeds of $400 million, which marks an important step in Century's financial strategy.
Usage of Proceeds from the Offering
The net proceeds from this successful offering are projected to be around $395 million, following the deduction of costs related to initial purchasers and expenses from the transaction. These funds are essential for Century as they will be used primarily to refinance existing debts, including the 7.50% Senior Secured Notes due in 2028. Moreover, this will also help repay outstanding borrowings under its credit facilities and cover any associated fees with the offering.
Details of the Secured Notes
The newly issued Secured Notes were sold at a price equal to 100% of their aggregate principal amount. Investors can expect to receive interest payments on a semi-annual basis, starting February 1, 2026, at an attractive 6.875% rate. Maturing on August 1, 2032, these notes represent a long-term financing solution for Century's needs.
Sales and Compliance Information
The offering and sale of the Secured Notes were executed in compliance with Rule 144A of the Securities Act of 1933, catering solely to qualified institutional buyers. Importantly, these Secured Notes have not been registered under the Securities Act or any state laws, making it crucial to adhere to applicable regulations for their sale, particularly in the United States.
Understanding the Future Outlook of Century Aluminum
Despite the inherent uncertainties surrounding financial transactions of this nature, it’s clear that Century Aluminum is positioning itself strategically for the future. The refinancing of its 2028 Notes, along with managing capital effectively through these new Secured Notes, demonstrates a proactive approach in navigating the competitive landscape of the aluminum industry.
About Century Aluminum Company
Known as the leading producer of primary aluminum within the United States, Century Aluminum Company operates not only in the domestic market but also in various international locations including Iceland, the Netherlands, and Jamaica. With a solid portfolio that also includes bauxite and alumina products, Century remains committed to maintaining its status as a major player in the aluminum sector.
Investor and Media Contacts
For inquiries, interested parties can reach out to: Ryan Crawford, available at 312-696-3132 for investor-related questions. For media inquiries, Tawn Earnest can be contacted at 614-698-6351.
Frequently Asked Questions
What are the Secured Notes issued by Century Aluminum?
The Secured Notes are 6.875% notes due in 2032, aimed at raising funds for refinancing existing debt and operational costs.
How much did Century Aluminum raise from the offering?
Century Aluminum raised gross proceeds of $400 million from the private offering.
What will be done with the money raised from the Secured Notes?
The proceeds will be used to refinance existing debts and pay off borrowings under credit facilities, which can help stabilize the company's finances.
When are the interest payments due for the Secured Notes?
Interest payments for the Secured Notes are scheduled to be paid semi-annually, starting on February 1, 2026.
Who can purchase the Secured Notes?
The Secured Notes were offered only to qualified institutional buyers under Rule 144A of the Securities Act.
About The Author
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